The British Retail Consortium (BRC) has raised concerns over the potential loss of up to 160,000 part-time jobs in the retail sector over the next three years. The industry body attributes this risk to increasing employment costs stemming from recent Budget measures and proposed regulatory changes.
Retail currently employs over 1.5 million part-time workers, more than half of the sector’s total workforce. Many of these roles are filled by students, parents, and seasonal workers. The BRC warns that rising employment costs could lead to a reduction in these jobs over the coming years.
Changes to Employer NICs and Their Effect on Employment
One of the cost increases highlighted by the BRC is the reduction in the employer National Insurance Contributions (NICs) threshold, which will drop from £9,100 to £5,000 per employee. The BRC suggests this could raise employment costs for part-time roles, potentially influencing hiring decisions.
The organisation further highlights that additional employment regulations under the proposed Employment Rights Bill could compel retailers to reassess their workforce structures. The potential reduction in local and flexible jobs would significantly affect workers who rely on part-time positions.
Impact on Young Workers and Entry-Level Opportunities
According to the BRC, nearly one-fifth of retail employees are under the age of 25. With fewer part-time roles, there may be fewer entry-level opportunities available for young people starting their careers.
Helen Dickinson, chief executive of the BRC, stated:
“Retail is a key source of employment right across the economy. The industry and its supply chains account for a third of jobs in one-fifth of UK constituencies, and retail plays a vital role in upskilling the workforce and boosting productivity growth, currently spending £4bn a year on training.
Retail has long offered the first rung of the career ladder to hundreds of thousands of young people, playing a vital role in communities up and down the country. However, between rising employer National Insurance Contributions, higher NLW costs, and incoming employment regulations, the government may be kicking away the ladder for the next generation. One in ten part-time retail roles are now at risk of being lost.”
Industry Implications and BRC’s Call for Government Support
The BRC notes that retailers are already managing significant financial pressures. Additional employment costs could influence business decisions regarding staffing and pricing.
Dickinson stated that retailers are facing significant cost pressures due to recent Budget measures. She warned:
“Retailers face a mountain of costs from the Budget and while they continue to absorb costs where they can, higher prices and job losses are inevitable.
If the government can find ways of mitigating the £7bn of costs facing the industry this year, as well as ensuring a pragmatic approach to the Employment Rights Bill that focuses on tackling unscrupulous employers, protecting employees while supporting employment, then many jobs would be saved.”
With the BRC launching its 2025 Manifesto for Retail, the organisation continues to push for policies that balance worker protections with economic sustainability, aiming to secure the future of part-time employment in the sector.
